Heat pump grant for oil boilers
An off-gas oil home in England or Wales is the centre of the higher grant, if the new system is air-to-water or ground source and the dates still apply.
Key takeaways
- £9,000 until 31 March 2027 for air-to-water or ground source.
- £7,500 is the amount after that date.
- Air-to-air is £2,500 throughout.
Looks eligible to apply
£9,000
An off-gas home replacing oil with an air-to-water heat pump is in the £9,000 category from 21 July 2026 to 31 March 2027. After that date the standard grant is £7,500.
A typical air-to-water install is often quoted around £10,000 to £16,000 before the grant, so the amount after a £9,000 grant would commonly sit around £1,000 to £7,000. That is a published range, not your quote.
See how quotes workThis is a guide, not a decision. Your installer applies and Ofgem decides.
Amounts come from the GOV.UK grant values notice and the Ofgem property owner page. This is a guide, not a decision. Your installer applies and Ofgem decides.
The rules for oil
The values notice lists “an air-to-water heat pump in an off-gas grid property that is replacing an oil heating system” at £9,000, and the same value for ground source. You also have to be off the gas grid in the scheme’s definition: not fuelled by mains gas, and without a gas meter point that still counts.
If you keep the oil boiler as a backup, the new system is a hybrid and the grant for installing a hybrid is refused. Replacing the oil system means the heat pump takes over.
The balance
Using the published air-to-water range of £10,000 to £16,000, the sum after £9,000 is about £1,000 to £7,000. Homes that need new radiators or a cylinder can cost more than the top of that range. The range is there so you can see that the grant is not the whole price.
We do not compare oil delivery prices with electricity on this page. That comparison waits until we can cite the tariffs.
What to do with the result
If the checker says £9,000, ask the installer to write that category on the quote and to say what happens if Ofgem treats the home as on-gas. The fallback amount in the rules is £7,500, not zero, for an eligible air-to-water job.
Quotes on this website are not being sent to installers yet. Use the result to prepare the conversation.
Sources
- Ofgem: Boiler Upgrade Scheme for property owners
- Ofgem: Boiler Upgrade Scheme for installers
- Ofgem: Boiler Upgrade Scheme property owner guidance (April 2026)
- GOV.UK: Notice of approved grant categories and values (updated 29 September 2026)
- GOV.UK: Apply for the Boiler Upgrade Scheme — what you can get
- GOV.UK: Apply for the Boiler Upgrade Scheme
Reviewed by
UK Heat Pump & Funding Specialist
MCIBSE and MCS certified retrofit specialist. Director of Thomson and Sons Low Carbon Consulting Firm Ltd, specialising in heat pump retrofits since 2005.